APPENDIX-A

GDP at constant price and FDI (1989-90 to 2019-2020)

Year GDP (Kyat in Million) FDI (Kyat in Million)
1989-1990 48883.1 3056.18
1990-1991 50259.5 1871.57
1991-1992 49933.3 40.03
1992-1993 54756.6 650.55
1993-1994 58063.9 2278.57
1994-1995 62406.1 8113.83
1995-1996 66741.6 3933.82
1996-1997 71042.4 16887.41
1997-1998 75123.1 4664.37
1998-1999 79460.2 331.41
1999-2000 88157.0 438.90
2000-2001 100274.8 1306.13
2001-2002 2842314.4 114.01
2002-2003 3184117.3 512.69
2003-2004 3624926.4 548.32
2004-2005 4116635.4 940.70
2005-2006 4675219.6 36394.05
2006-2007 13893395.3 4318.21
2007-2008 15559412.8 1234.32
2008-2009 17155078.1 5908.58
2009-2010 18964940.4 1977.48
2010-2011 39776764.9 119993.79
2011-2012 42000875.7 27866.76
2012-2013 45080661.5 1163962.94
2013-2014 48879158.5 3918250.44
2014-2015 52785050.8 7850322.34
2015-2016 56476225.1 10434735.30
2016-2017 59787128.5 7979774.40
2017-2018 63827918.6 7443511.80
2018-2019 89147341.4 5406016.20
2019-2020 91976676.9 7344570.71
Source: Myanmar Statistical Year Books
The Amount of FDI as a percentage of GDP during the period of 1989-2020

Sr. No. Year Percentage

1 1989 0.95
2 1990 3.65
3 1991 3.53
4 1992 2.03
5 1993 1.14
6 1994 1.54
7 1995 3.31
8 1996 5.61
9 1997 7.93
10 1998 9.77
11 1999 4.27
12 2000 1.05
13 2001 0.15
14 2002 0.14
15 2003 17.18
16 2004 6.05
17 2005 0.78
18 2006 4.39
19 2007 0.01
20 2008 2.16
21 2009 0.08
22 2010 14.87
23 2011 1.83
24 2012 0.76
25 2013 0.88
26 2014 1.35
27 2015 4.92
28 2016 4.37
29 2017 6.46
30 2018 3.93
31 2019 3.38
32 2020 2.71
Source: UNCTAD (Annual data)
 APPENDIX-B
Yearly approved amount of Foreign Investment (By Sector)

Communication
Manufacturing

Transport and
Livestock and
Construction

Development
Oil and Gas
Agriculture

Real Estate

Industrial
Hotel and
Fisheries

Tourism
Mining

Others
Power
Estate

Total
Year

1989-1990 54.10 298.05 15.84 81.50 449.49

1990-1991 77.31 55.10 19.05 42.71 86.40 280.57
1991-1992 5.89 5.89
1992-1993 2.69 5.85 33.38 44.50 13.34 1.00 3.03 103.79
1993-1994 7.60 20.87 19.50 17.75 311.46 377.18
1994-1995 148.21 0.50 1039.53 76.70 1.30 86.06 1352.30
1995-1996 13.07 155.78 14.80 21.29 118.92 79.19 251.45 12.00 1.67 668.17
1996-1997 5.99 17.27 17.50 178.30 695.60 923.56 47.87 114.92 623.50 181.11 8.62 2814.25
1997-1998 5.67 5.82 2.70 172.10 319.22 106.60 40.00 122.19 3.10 777.39
1998-1999 5.00 4.89 19.57 29.46
1999-2000 3.26 18.50 5.25 13.10 15.50 55.61
2000-2001 20.00 20.50 1.11 47.55 77.39 7.89 5.25 28.00 10.00 217.69
2001-2002 3.25 15.75 19.00
2002-2003 26.39 3.39 44.00 13.18 86.95
2003-2004 2.60 1.45 54.30 2.82 30.00 91.17
2004-2005 6.00 142.55 3.52 3.50 2.71 158.28
2005-2006 0.70 34.98 6030.00 6065.68
2006-2007 438.48 281.22 719.70
 Communication
Manufacturing

Transport and
Livestock and
Construction

Development
Oil and Gas
Agriculture

Real Estate

Industrial
Hotel and
Fisheries

Tourism
Mining

Others
Power
Estate

Total
Year
2007-2008 12.00 5.00 170.00 18.72 205.72
2008-2009 856.00 114.00 -0.23 15.00 984.76
2009-2010 2.50 278.60 33.23 15.25 329.58
2010-2011 138.75 1396.08 10179.30 66.32 8218.52 19998.97
2011-2012 19.90 247.70 32.25 0.63 4343.98 4644.46
2012-2013 9.65 5.60 15.33 309.20 400.72 300.00 364.20 14.77 1419.47
2013-2014 20.27 96.02 32.73 1827.28 1190.23 435.21 440.57 46.51 18.23 4107.06
2014-2015 39.67 26.86 6.26 3220.31 1502.01 1679.30 357.95 780.75 40.11 357.32 8010.53
2015-2016 7.18 8.25 28.92 4817.79 1065.00 1931.00 288.40 728.68 10.00 360.10 235.96 9481.28
2016-2017 96.68 1179.51 3081.15 403.65 747.62 909.88 231.32 6649.81
2017-2018 134.49 27.66 1.31 1769.18 901.64 176.77 1261.98 34.04 405.77 1005.26 5718.09
2018-2019 19.12 156.90 10.20 1347.83 1538.40 82.62 210.93 48.45 93.28 650.74 4158.47
2019-2020 17.73 138.49 3.80 352.82 1128.22 300.45 53.34 1115.96 273.49 1671.89 469.78 5525.97
Total 421.21 37.77 881.07 2904.59 22773.41 11951.90 10936.38 2955 6314.34 559.09 22765.46 3006.77 85506.74

Source: Myanmar Statistical Year Books

 APPENDIX-C

GDP (Level & Intercept)

Null Hypothesis: GDP has a unit root

Exogenous: Constant
Lag Length: 0 (Automatic - based on SIC, maxlag=7)

t-Statistic Prob.*

Augmented Dickey-Fuller test statistic -0.605665 0.8549

Test critical values: 1% level -3.670170
5% level -2.963972
10% level -2.621007

*MacKinnon (1996) one-sided p-values.

Augmented Dickey-Fuller Test Equation

Dependent Variable: D(GDP)
Method: Least Squares
Date: 12/21/22 Time: 07:09
Sample (adjusted): 1990 2019
Included observations: 30 after adjustments

Variable Coefficient Std. Error t-Statistic Prob.

GDP(-1) -0.023799 0.039293 -0.605665 0.5496

C 0.596565 0.581569 1.025786 0.3138

R-squared 0.012932 Mean dependent var 0.251329

Adjusted R-squared -0.022321 S.D. dependent var 0.624911
S.E. of regression 0.631847 Akaike info criterion 1.984000
Sum squared resid 11.17844 Schwarz criterion 2.077413
Log likelihood -27.76000 Hannan-Quinn criter. 2.013884
F-statistic 0.366830 Durbin-Watson stat 2.071958
Prob(F-statistic) 0.549616
GDP (Level and Trend & Intercept)

Null Hypothesis: GDP has a unit root

Exogenous: Constant, Linear Trend
Lag Length: 0 (Automatic - based on SIC, maxlag=7)

t-Statistic Prob.*

Augmented Dickey-Fuller test statistic -1.924111 0.6172

Test critical values: 1% level -4.296729
5% level -3.568379
10% level -3.218382

*MacKinnon (1996) one-sided p-values.

Augmented Dickey-Fuller Test Equation

Dependent Variable: D(GDP)
Method: Least Squares
Date: 12/21/22 Time: 07:38
Sample (adjusted): 1990 2019
Included observations: 30 after adjustments

Variable Coefficient Std. Error t-Statistic Prob.

GDP(-1) -0.247357 0.128556 -1.924111 0.0649

C 2.610034 1.239895 2.105044 0.0447
@TREND("1989") 0.079329 0.043605 1.819265 0.0800

R-squared 0.120716 Mean dependent var 0.251329

Adjusted R-squared 0.055584 S.D. dependent var 0.624911
S.E. of regression 0.607295 Akaike info criterion 1.935035
Sum squared resid 9.957791 Schwarz criterion 2.075155
Log likelihood -26.02552 Hannan-Quinn criter. 1.979860
F-statistic 1.853407 Durbin-Watson stat 1.862611
Prob(F-statistic) 0.176093

GDP (Level and None of Trend & Intercept)

Null Hypothesis: GDP has a unit root

Exogenous: None
Lag Length: 0 (Automatic - based on SIC, maxlag=7)

t-Statistic Prob.*

Augmented Dickey-Fuller test statistic 2.013426 0.9875

Test critical values: 1% level -2.644302
5% level -1.952473
10% level -1.610211

*MacKinnon (1996) one-sided p-values.

Augmented Dickey-Fuller Test Equation

Dependent Variable: D(GDP)
Method: Least Squares
Date: 12/21/22 Time: 07:41
Sample (adjusted): 1990 2019
Included observations: 30 after adjustments

Variable Coefficient Std. Error t-Statistic Prob.

GDP(-1) 0.015707 0.007801 2.013426 0.0534

R-squared -0.024162 Mean dependent var 0.251329

Adjusted R-squared -0.024162 S.D. dependent var 0.624911
S.E. of regression 0.632415 Akaike info criterion 1.954224
Sum squared resid 11.59853 Schwarz criterion 2.000931
Log likelihood -28.31336 Hannan-Quinn criter. 1.969166
Durbin-Watson stat 2.077336

s
GDP (First Difference and Intercept)

Null Hypothesis: D(GDP) has a unit root

Exogenous: Constant
Lag Length: 0 (Automatic - based on SIC, maxlag=7)

t-Statistic Prob.*

Augmented Dickey-Fuller test statistic -5.473583 0.0001

Test critical values: 1% level -3.679322
5% level -2.967767
10% level -2.622989

*MacKinnon (1996) one-sided p-values.

Augmented Dickey-Fuller Test Equation

Dependent Variable: D(GDP,2)
Method: Least Squares
Date: 12/21/22 Time: 07:42
Sample (adjusted): 1991 2019
Included observations: 29 after adjustments

Variable Coefficient Std. Error t-Statistic Prob.

D(GDP(-1)) -1.051897 0.192177 -5.473583 0.0000

C 0.272475 0.129748 2.100032 0.0452

R-squared 0.525984 Mean dependent var 0.000120

Adjusted R-squared 0.508428 S.D. dependent var 0.920369
S.E. of regression 0.645291 Akaike info criterion 2.028242
Sum squared resid 11.24282 Schwarz criterion 2.122538
Log likelihood -27.40951 Hannan-Quinn criter. 2.057774
F-statistic 29.96011 Durbin-Watson stat 2.006077
Prob(F-statistic) 0.000009

GDP (First Difference and Trend & Intercept)

Null Hypothesis: D(GDP) has a unit root

Exogenous: Constant, Linear Trend
Lag Length: 0 (Automatic - based on SIC, maxlag=7)

t-Statistic Prob.*

Augmented Dickey-Fuller test statistic -5.372708 0.0008

Test critical values: 1% level -4.309824
 5% level -3.574244
10% level -3.221728

*MacKinnon (1996) one-sided p-values.

Augmented Dickey-Fuller Test Equation

Dependent Variable: D(GDP,2)
Method: Least Squares
Date: 12/21/22 Time: 07:45
Sample (adjusted): 1991 2019
Included observations: 29 after adjustments

Variable Coefficient Std. Error t-Statistic Prob.

D(GDP(-1)) -1.051589 0.195728 -5.372708 0.0000

C 0.313684 0.267807 1.171307 0.2521
@TREND("1989") -0.002581 0.014587 -0.176913 0.8609

R-squared 0.526554 Mean dependent var 0.000120

Adjusted R-squared 0.490135 S.D. dependent var 0.920369
S.E. of regression 0.657188 Akaike info criterion 2.096004
Sum squared resid 11.22930 Schwarz criterion 2.237449
Log likelihood -27.39206 Hannan-Quinn criter. 2.140303
F-statistic 14.45825 Durbin-Watson stat 2.009115
Prob(F-statistic) 0.000060

GDP (First Difference and None of Trend & Intercept)

Null Hypothesis: D(GDP) has a unit root

Exogenous: None
Lag Length: 0 (Automatic - based on SIC, maxlag=7)

t-Statistic Prob.*

Augmented Dickey-Fuller test statistic -4.772427 0.0000

Test critical values: 1% level -2.647120
5% level -1.952910
10% level -1.610011

*MacKinnon (1996) one-sided p-values.

Augmented Dickey-Fuller Test Equation

Dependent Variable: D(GDP,2)
Method: Least Squares
Date: 12/21/22 Time: 07:48
Sample (adjusted): 1991 2019
Included observations: 29 after adjustments

Variable Coefficient Std. Error t-Statistic Prob.

 D(GDP(-1)) -0.897126 0.187981 -4.772427 0.0001

R-squared 0.448559 Mean dependent var 0.000120

Adjusted R-squared 0.448559 S.D. dependent var 0.920369
S.E. of regression 0.683458 Akaike info criterion 2.110570
Sum squared resid 13.07920 Schwarz criterion 2.157718
Log likelihood -29.60327 Hannan-Quinn criter. 2.125336
Durbin-Watson stat 2.018379
FDI (Level and Intercept)
Null Hypothesis: FDI has a unit root
Exogenous: Constant
Lag Length: 0 (Automatic - based on SIC, maxlag=7)

t-Statistic Prob.*

Augmented Dickey-Fuller test statistic -0.883800 0.7794

Test critical values: 1% level -3.670170
5% level -2.963972
10% level -2.621007

*MacKinnon (1996) one-sided p-values.

Augmented Dickey-Fuller Test Equation

Dependent Variable: D(FDI)
Method: Least Squares
Date: 12/21/22 Time: 07:54
Sample (adjusted): 1990 2019
Included observations: 30 after adjustments

Variable Coefficient Std. Error t-Statistic Prob.

FDI(-1) -0.082932 0.093836 -0.883800 0.3843

C 1.045882 0.955004 1.095160 0.2828

R-squared 0.027139 Mean dependent var 0.259440

Adjusted R-squared -0.007606 S.D. dependent var 1.891879
S.E. of regression 1.899060 Akaike info criterion 4.184935
Sum squared resid 100.9800 Schwarz criterion 4.278348
Log likelihood -60.77403 Hannan-Quinn criter. 4.214819
F-statistic 0.781103 Durbin-Watson stat 2.439743
Prob(F-statistic) 0.384330
FDI (Level and Trend & Intercept)

Null Hypothesis: FDI has a unit root

Exogenous: Constant, Linear Trend
Lag Length: 0 (Automatic - based on SIC, maxlag=7)

t-Statistic Prob.*

Augmented Dickey-Fuller test statistic -2.520785 0.3166

Test critical values: 1% level -4.296729
5% level -3.568379
10% level -3.218382

*MacKinnon (1996) one-sided p-values.

Augmented Dickey-Fuller Test Equation

Dependent Variable: D(FDI)
Method: Least Squares
Date: 12/21/22 Time: 07:55
Sample (adjusted): 1990 2019
Included observations: 30 after adjustments

Variable Coefficient Std. Error t-Statistic Prob.

FDI(-1) -0.341511 0.135478 -2.520785 0.0179

C 1.278960 0.883026 1.448384 0.1590
@TREND("1989") 0.143163 0.057835 2.475372 0.0199

R-squared 0.207086 Mean dependent var 0.259440

Adjusted R-squared 0.148352 S.D. dependent var 1.891879
S.E. of regression 1.745917 Akaike info criterion 4.047076
Sum squared resid 82.30207 Schwarz criterion 4.187196
Log likelihood -57.70614 Hannan-Quinn criter. 4.091901
F-statistic 3.525804 Durbin-Watson stat 2.287931
Prob(F-statistic) 0.043607
FDI (Level and None of Trend & Intercept)

Null Hypothesis: FDI has a unit root

Exogenous: None
Lag Length: 0 (Automatic - based on SIC, maxlag=7)

t-Statistic Prob.*

Augmented Dickey-Fuller test statistic 0.375058 0.7863

Test critical values: 1% level -2.644302
5% level -1.952473
10% level -1.610211

*MacKinnon (1996) one-sided p-values.

Augmented Dickey-Fuller Test Equation

Dependent Variable: D(FDI)
Method: Least Squares
Date: 12/21/22 Time: 07:58
Sample (adjusted): 1990 2019
Included observations: 30 after adjustments

Variable Coefficient Std. Error t-Statistic Prob.

FDI(-1) 0.012821 0.034184 0.375058 0.7103

R-squared -0.014533 Mean dependent var 0.259440

Adjusted R-squared -0.014533 S.D. dependent var 1.891879
S.E. of regression 1.905576 Akaike info criterion 4.160211
Sum squared resid 105.3054 Schwarz criterion 4.206918
Log likelihood -61.40317 Hannan-Quinn criter. 4.175153
Durbin-Watson stat 2.576490
FDI (First Difference and Intercept)

Null Hypothesis: D(FDI) has a unit root

Exogenous: Constant
Lag Length: 0 (Automatic - based on SIC, maxlag=7)

t-Statistic Prob.*

Augmented Dickey-Fuller test statistic -7.048918 0.0000

Test critical values: 1% level -3.679322
5% level -2.967767
10% level -2.622989

*MacKinnon (1996) one-sided p-values.

Augmented Dickey-Fuller Test Equation

Dependent Variable: D(FDI,2)
Method: Least Squares
Date: 12/21/22 Time: 08:00
Sample (adjusted): 1991 2019
Included observations: 29 after adjustments

Variable Coefficient Std. Error t-Statistic Prob.

D(FDI(-1)) -1.293044 0.183439 -7.048918 0.0000

C 0.360862 0.350249 1.030301 0.3120

R-squared 0.647921 Mean dependent var 0.027430

Adjusted R-squared 0.634881 S.D. dependent var 3.092866
S.E. of regression 1.868868 Akaike info criterion 4.155014
Sum squared resid 94.30198 Schwarz criterion 4.249311
Log likelihood -58.24771 Hannan-Quinn criter. 4.184547
F-statistic 49.68725 Durbin-Watson stat 1.876542
Prob(F-statistic) 0.000000
FDI (First Difference and Trend & Intercept)
Null Hypothesis: D(FDI) has a unit root
Exogenous: Constant, Linear Trend
Lag Length: 0 (Automatic - based on SIC, maxlag=7)

t-Statistic Prob.*

Augmented Dickey-Fuller test statistic -7.092742 0.0000

Test critical values: 1% level -4.309824
5% level -3.574244
10% level -3.221728

*MacKinnon (1996) one-sided p-values.

Augmented Dickey-Fuller Test Equation

Dependent Variable: D(FDI,2)
Method: Least Squares
Date: 12/21/22 Time: 08:01
Sample (adjusted): 1991 2019
Included observations: 29 after adjustments

Variable Coefficient Std. Error t-Statistic Prob.

D(FDI(-1)) -1.318925 0.185954 -7.092742 0.0000

C -0.260570 0.752536 -0.346255 0.7319
@TREND("1989") 0.039257 0.042048 0.933613 0.3591

R-squared 0.659341 Mean dependent var 0.027430

Adjusted R-squared 0.633136 S.D. dependent var 3.092866
S.E. of regression 1.873326 Akaike info criterion 4.191005
Sum squared resid 91.24312 Schwarz criterion 4.332450
Log likelihood -57.76958 Hannan-Quinn criter. 4.235304
F-statistic 25.16133 Durbin-Watson stat 1.883407
Prob(F-statistic) 0.000001
FDI (First Difference and None of Trend & Intercept)

Null Hypothesis: D(FDI) has a unit root

Exogenous: None
Lag Length: 0 (Automatic - based on SIC, maxlag=7)

t-Statistic Prob.*

Augmented Dickey-Fuller test statistic -6.966015 0.0000

Test critical values: 1% level -2.647120
5% level -1.952910
10% level -1.610011

*MacKinnon (1996) one-sided p-values.

Augmented Dickey-Fuller Test Equation

Dependent Variable: D(FDI,2)
Method: Least Squares
Date: 12/21/22 Time: 08:05
Sample (adjusted): 1991 2019
Included observations: 29 after adjustments

Variable Coefficient Std. Error t-Statistic Prob.

D(FDI(-1)) -1.267519 0.181958 -6.966015 0.0000

R-squared 0.634078 Mean dependent var 0.027430

Adjusted R-squared 0.634078 S.D. dependent var 3.092866
S.E. of regression 1.870920 Akaike info criterion 4.124611
Sum squared resid 98.00952 Schwarz criterion 4.171759
Log likelihood -58.80686 Hannan-Quinn criter. 4.139378
Durbin-Watson stat 1.857707
ADF test on residual

Null Hypothesis: D(RESIDUAL) has a unit root

Exogenous: Constant
Lag Length: 0 (Automatic - based on SIC, maxlag=7)

t-Statistic Prob.*

Augmented Dickey-Fuller test statistic -6.804220 0.0000

Test critical values: 1% level -3.679322
5% level -2.967767
10% level -2.622989

*MacKinnon (1996) one-sided p-values.

Augmented Dickey-Fuller Test Equation

Dependent Variable: D(RESIDUAL,2)
Method: Least Squares
Date: 12/21/22 Time: 22:38
Sample (adjusted): 1991 2019
Included observations: 29 after adjustments

Variable Coefficient Std. Error t-Statistic Prob.

D(RESIDUAL(-1)) -1.263534 0.185699 -6.804220 0.0000

C 0.134459 0.247326 0.543651 0.5911

R-squared 0.631638 Mean dependent var -0.014852

Adjusted R-squared 0.617995 S.D. dependent var 2.146438
S.E. of regression 1.326640 Akaike info criterion 3.469648
Sum squared resid 47.51928 Schwarz criterion 3.563944
Log likelihood -48.30989 Hannan-Quinn criter. 3.499180
F-statistic 46.29742 Durbin-Watson stat 1.960571
Prob(F-statistic) 0.000000
The Result of OLS Regression

Dependent Variable: GDP

Method: Least Squares
Date: 12/21/22 Time: 23:09
Sample: 1989 2019
Included observations: 31

Variable Coefficient Std. Error t-Statistic Prob.

C 9.342797 1.076900 8.675639 0.0000

FDI 0.545820 0.103481 5.274579 0.0000

R-squared 0.489627 Mean dependent var 14.63017

Adjusted R-squared 0.472028 S.D. dependent var 3.015368
S.E. of regression 2.191018 Akaike info criterion 4.468950
Sum squared resid 139.2162 Schwarz criterion 4.561465
Log likelihood -67.26873 Hannan-Quinn criter. 4.499108
F-statistic 27.82118 Durbin-Watson stat 0.369646
Prob(F-statistic) 0.000012